O'Reilly logo

Wiley GAAP 2008 by Colorado Steven M. Bragg Englewood, Ralph Nach American Express Tax and Business Inc., Barry J. Epstein

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Concepts, Rules, and Examples

SOP 00‐2, Accounting by Producers or Distributors of Films, provides the authoritative guidance with respect to accounting for arrangements to sell, license, or exhibit films. The term “film” is generic and includes intellectual property produced on traditional celluloid film as well as videotape, digital, or other video‐recording formats. The content or format of films includes (1) feature films, (2) television series, (3) television specials, and (4) similar products (including animated films and television programming). The guidance in the SOP applies to producers and distributors who own or hold rights to distribute or exploit films. The SOP does not apply to the following specialized industries or applications that have their own specialized GAAP:

  1. The recording industry (FAS 50)

  2. Cable television (FAS 51)

  3. Broadcasters (FAS 63)

  4. Computer software to be sold, leased, or otherwise marketed (FAS 86)

  5. Software revenue recognition (SOP 97‐2)

  6. Entertainment and educational software products (EITF 96‐6)

There are many varieties of contractual sales or licensing arrangements governing the rights or group of rights to a single or multiple films. The film's producer (referred to in the SOP and in this discussion as “the entity”) may license it to distributors, theaters, exhibitors, or other licensees (referred to in the SOP and in this discussion as “customers”) on an exclusive or nonexclusive basis in a particular market or territory. The terms of the license may ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required